Leasing a new FR-S

[fly2low]

Again, to further illustrate how poor a lease deal it is. I recently helped a family member to calculate her option. These are the cars that I personally calculated and are within the 36 x $400 otd limit (I am sure there are many more):

- Mitsubishi Evo GSR
- Infiniti G37 Journey
- Volvo S60 T5 AWD Premier
- VW CC R-Line
- Honda Acccord EX-L w/Navi (so so deal, too. But I'll list it anyway).

[WiKKiD]

I'm leasing my car for 3 years @ 0.9% interest "12,000 miles a year" and in three years I will buy the car for the remaining balance and sell it to purchase the sti version which should be out by then. My bank was gonna do the full loan for purchase but at 1.8% interest. So its cheaper for me to lease then buy then to buy without leasing it.




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[DBacon1052]

Originally Posted by marky

buy then refinance...its all up to you.. 120 miles is like a quater of a tank... its a sports car.. its ment to be drivin

Your entire statement is just one big oxymoron

[fly2low]

Originally Posted by WiKKiD

I'm leasing my car for 3 years @ 0.9% interest "12,000 miles a year" and in three years I will buy the car for the remaining balance and sell it to purchase the sti version which should be out by then. My bank was gonna do the full loan for purchase but at 1.8% interest. So its cheaper for me to lease then buy then to buy without leasing it.




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Your tt? Different car different calculation.

[ruskymx]

Originally Posted by fly2low

Since there is no special, is mf for tier 1+ standard TFC 0.0020? It seems residual have dropped too . Yours was at very high 67. Now ALG posts it at 62

I also leased my car in June of 2012 so I fully expect the residual to be less 7 months later.

Originally Posted by fly2low

I did calculations based on the county (Orange 8% sales tax) and state (California, for fees) I live in to provide a comparison on what is available for me.

Base car $25350, add sales tax, registration, fees $27777. This also includes acquisition fees at $650, weighing at 2.5% (!!!) of the msrp.

Leasing 36 months, 12k mi/ year, using 0.0018 MF and 62% residual: $402 x 36.

Financing 72 months 2.49% with my credit union (I could do <60 months for 1.99% but I want to illustrate something here): $416

So if I run the scenario of having the car for three years, it seems that I will save about $500 by leasing it.

In three years, if I finance, I will have paid $416 x 36 and I will have about $15k in the balance. 62% of residual for $25350 is $15.7k. So, in three years I will not be underwater and might have a bit of equity. I will probably have even more if I sell the car to a private party. In short, I might get more than $500 but let's just say that it will be $500.

So, it is about even for both scenarios.

However, if I like the car and want to keep it beyond 3 years, then:

- If I started with financing, I will need to pay the other 36 x $416 to payoff the car.

- If I started with leasing, I will need to initiate a loan for $15.7K + 8% sales tax = about $17k. My current credit union used car interest rate for 36 months (to compare it apple to apple) is 2.49%. So, the payment is 3 x $490.

Doing a simple calculation, the difference is 36 x (490-416) = $2664, about 10.5% of the original MSRP. One thing I'd probably add is a gap insurance for my loan protection available from my credit union for $395 for the duration of the loan. So, the difference is $2664-395=$2269. You might need to add disposition fee (couldn't find it) if you decide to turn your Scion in.

Disposition fee is $350, but doesn't come into play in your example because you are comparing buying the lease out. Only matters if the vehicle is turned in to Toyota at the end of three years. If you sell it, trade it or buy it, disposition fee means squat.

Bottom line: for me personally, leasing in this case doesn't have an advantage over financing.

Key words in bold

Note:
-Usually, the major advantage of leasing is cash flow (much lower payment) but in this case $14 is negligible (If I can't afford the $14/mo difference maybe I shouldn't get the car).

Yes, but it's surprising how people claim it will bust their budget. Living paycheck to paycheck....the American way!

-If I run the numbers with $1000 rebate, the difference is about $35/mo.

If this refers to college grad (now $500 or military $1000), the rebate is applicable to finance or lease calculations AND it MUST BE FINANCED THROUGH Toyota Financial to get it. You would have to finance it through Toyota first, then refinance it through you CU (now a used car) at a possibly higher rate than their new car rate (some are the same). Oh, and $1000 on a 3 year lease changes the payment by $30 and on a 72 mo buy it's $15 per month

-Lease ratio is at $402/1.08/25350*100 (see my earlier posting)= 1.47. Very poor and way below the 1.25 threshold. Another proof that leasing is not a good choice here.

Sales tax in on the PAYMENT ONLY, not on the vehicle total and then again on the payment. Also, by the lease payment that you got, you are adding the 1st payment and tags to the cap cost, correct? If not, $789 is required at startup and there are 35 payments left of $390.

2.49% for 72 is a VERY good rate that not everyone will have access to. If you use Toyota's rate for Tier 1 + for 72 months of 3.64% the finance payment jumps to $430.

All in all though, you are 100% correct about financing being the better bet for long term purchase and being about equal for the first 3 years. It all depends on each person's situation and what they plan to do with the car and how long they plan to keep it.

To say that leasing is not a good choice is not a 100% correct statement. More information is needed on a case by case basis to determine if it is the right way to pay for the car for the customer that is in front of you at that moment. There are so many factors to consider like annual mileage, life stages (single, married, family, etc), trade cycle (avg is 3.5-4.5 years), tax deduction possibility, monthly budget and more.

In other situations where a vehicle has a money factor of .00001 like 12 Camrys, 13 Corollas and more, it may be cheaper to lease than buy than to just buy it at first. (not sure, didn't do the math) Look at both options and see what works best for you and your situation

Ruskymx

[fly2low]

Yes, it is for me personally. Yes, I calculated lease using the use tax only.

I was just running a scenario for myself. A long term customer of Lexus financial here .

I am not saying that lease is not a good option. I am saying that leasing an FRS, at least for me, is not a good option.

The key point is: one must know their numbers. Sometimes leasing is a better option sometimes financing is.

For me personally, FRS is not a good option to lease at 36 x $402 where as with my '13 GS350, 62% res, 0.00095 mf, invoice selling price minus $1500 loyalty bonus and LFS paid first payment, $590 x 35 with zero drive off is a smoking deal for a car with MSRP 53530. Even without spreading the 35 actual payments to 36, the ratio is still 1.02.

Unless there is an incentive from Toyota, I will go with financing when I get FRS. Cash purchase when the interest rate is 1.99-2.49% is not prudent as I could use the money somewhere else.

[WiKKiD]

Originally Posted by fly2low

Your tt? Different car different calculation.

No! My BRZ Limited
I paid cash for my TT

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[fly2low]

Originally Posted by WiKKiD

No! My BRZ Limited
I paid cash for my TT

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Which bank? Subaru usually goes through chase and their rate is horrible at 0.00235 and 56%. Which dealer in ohio did you take delivery from? I m from central ohio i know all dealers in the state.

[rhoyle]

Don't forget that if you buy and then trade in at a later date you only owe sales tax on the difference in price between the new car and the trade. If we are talking about 15000ish residuals, that tax may be as much as 1500$ in a place like Memphis, or may not matter at all somewhere in Montana.

The bottom line is that lessors are in business to make money. They don't usually overestimate residuals, and they don't live on the money factor alone. If there wasnt money to be made in the industry, the industry wouldn't exist.

All that aside though, I'm shocked at the interest rates some of you are quoting. If you're paying over 2%, you're paying too much. I'm currently at 1.49 on a USED car; I had other offers at 1.79 and 1.99.

[WiKKiD]

JP Morgan was the bank that Subaru used for finance and I purchased thru Joseph Subaru of KY

[fly2low]

No such thing. Stop trolling. You dont even know jp morgan and chase are the same company now. Subaru rate is 0.00235 and 56%, scion rate is 0.0018 and 66%, a friendly local dealer corrected me.

[WiKKiD]

Originally Posted by fly2low

No such thing. Stop trolling. You dont even know jp morgan and chase are the same company now. Subaru rate is 0.00235 and 56%, scion rate is 0.0018 and 66%, a friendly local dealer corrected me.

Who is trolling? if i was trolling dont you think i would have way more post then i have !!!!

im not here to lie thats what my % is!

[ruskymx]

The residual on a 2013 FRS 6MT right now for a 12k /year lease is now $16,456 and 15k/yr is $15,972. So it looks like it is about 66% now instead of the 67% it was when I leased mine.....7 months ago! I expected it to be lower than that to be honest. Actually the 62% mentioned earlier posts I thought was completely possible.

Ruskymx